Life Insurance
What people don't understand or don't want to think about is what happens when you die. This is a hugely traumatic time and if you don't realise the implications after this period then you may come unstuck.
When you die all your debts have to be repaid. So if you have a joint mortgage and the surviving partner cant justify the lending required to cover the mortgage then the property will need to be sold unless you have sufficient funds elsewhere to reduce the borrowing or repay in full. All unsecured debts need to be repaid along with any car finances or hire purchases.
Life Insurance Policies pay out Lump Sums or Regular Monthly Benefit Payments